Omega Healthcare Investors(US:OHI)2025-05-01 20:18Financial Performance - Omega Healthcare Investors reported net income of $112 million, or $0.33 per common share, for Q1 2025, an increase from $69 million, or $0.27 per common share, in Q1 2024[4]. - Nareit Funds From Operations (Nareit FFO) for the quarter were $184 million, or $0.62 per common share, compared to $153 million, or $0.60 per common share, in Q1 2024[4]. - Adjusted Funds From Operations (AFFO) increased to $221 million, or $0.75 per common share, from $176 million, or $0.68 per common share, in Q1 2024[4]. - Total revenues for Q1 2025 were $276,785,000, an increase of 13.8% compared to $243,299,000 in Q1 2024[41]. - Rental income increased to $228,375,000 in Q1 2025, up from $203,204,000 in Q1 2024, reflecting a growth of 12.4%[41]. - Net income available to common stockholders for Q1 2025 was $109,032,000, compared to $67,361,000 in Q1 2024, representing a significant increase of 62%[41]. - Earnings per common share available to common stockholders increased to $0.34 for Q1 2025, compared to $0.27 for Q1 2024[41]. - Nareit FFO per share for Q1 2025 was $0.62, compared to $0.60 in Q1 2024, representing a 3.3% increase[43]. - Funds Available for Distribution (FAD) for the quarter was $210.81 million, a 25.5% increase from $167.92 million in the prior year[43]. Revenue and Investments - Revenues for Q1 2025 totaled $276.8 million, a $33.5 million increase over Q1 2024, driven by new investments and annual escalators[6]. - The company completed approximately $78 million in new investments in Q1 2025, including $58 million in real estate acquisitions and $20 million in real estate loans[4][13]. - In April 2025, Omega acquired 45 facilities in the U.K. and Jersey for approximately $344 million, with annual rent of about $34.4 million[15]. Guidance and Future Outlook - Omega increased its 2025 AFFO guidance to a range of $2.95 to $3.01 per share, up from the previous range of $2.90 to $2.98 per share[4][27]. - The company will conduct a conference call on May 2, 2025, to review Q1 2025 results and current developments[31]. Debt and Equity - The company had $4.5 billion in outstanding indebtedness as of March 31, 2025, with a weighted-average interest rate of 4.6%[23]. - Total assets as of March 31, 2025, were $9,705,738,000, a decrease from $9,897,891,000 as of December 31, 2024[39]. - Total liabilities decreased to $4,773,715,000 as of March 31, 2025, down from $5,167,052,000 as of December 31, 2024[39]. - The company’s total stockholders' equity increased to $4,740,935,000 as of March 31, 2025, compared to $4,536,673,000 as of December 31, 2024[39]. Cash Flow and Expenses - The company’s cash and cash equivalents decreased to $367,957,000 as of March 31, 2025, from $518,340,000 as of December 31, 2024[39]. - The company reported a provision for credit losses of $5,092,000 in Q1 2025, down from $8,470,000 in Q1 2024[41]. - The company recorded a $10.0 million lease inducement as a reduction to rental income related to a new 10-year master lease[44]. - Non-cash stock-based compensation expense included $6.6 million associated with a leadership transition in January 2025[44]. - The company reported a non-cash expense of $3.19 million for the quarter, slightly down from $3.20 million in the previous year[46]. Shareholder Returns - Omega declared a quarterly cash dividend of $0.67 per share, to be paid on May 15, 2025[26]. Performance Metrics - The company reported a trailing 12-month EBITDAR coverage of over 1.6x with Genesis Healthcare, indicating a strong credit position despite recent rent payment issues[5]. - The weighted-average common shares outstanding, diluted, increased to 294.93 million in Q1 2025 from 257.26 million in Q1 2024[43]. - The company emphasizes that Nareit FFO, AFFO, and FAD are important non-GAAP measures for assessing operating performance[47].